This section covers terminology related to earnings and revenue models
Redline: The minimum Net Price Per Watt your company can sell. Each region has its own redline. If you sell at this threshold there will be no money for owners or sales reps.
Market Baseline (also known as Region Redline or Market Redline): The lowest Net PPW that a company can sell at a particular State/Region. In the CBATS each region has a different baseline/redline from freedom, so the baseline/redline would be different in each region.
Zero Line: The minimum Net Price Per Watt that YOUR company sets for the reps to sell in a region. Each company sets the internal zero line at some price above the redline. The purpose is to have room for errors and for some margin.
Adders: Adders are additional costs to a project. Extras such as high roof tilt, flat roof, reroof, MPU, electrical upgrades, etc.
Dealer Fee: The dealer fee is a method finance companies let home owners buy down the interest rate. If you don't have a dealer fee the interest rate will be higher. If someone is planning on paying off their loan faster, choose a finance plan that does not have a high dealer fee.
Customer Price Per Watt: Final cost to install the system (including dealer fees, adders, and other costs) / watt
Gross Price Per Watt: Same as customer price per watt
Sold Price Per Watt: Gross Price Per Watt - Dealer Fee
Net Price Per Watt (Net PPW): Net Price Per Watt is the “price per watt” (PPW) of the solar array per watt after all adders have been removed including dealer fees and other costs.
Commission Spread: (Net_PPW - Region_Zero_Line) * Freedom_Split
Freedom Split: Freedom works off oa a revenue share and takes a 20% cut from the Commission Spread for their earnings
Freedom Lead Adder: The adder cost from Freedom Forever of taking leads from Freedom.
Site Audit Cost: The cost of the site audit being completed on a sale.
Company Earnings: Commission_Spread * (System_Size * 1000) - Site_Audit_Cost - Freedom_Lead_Adder
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